Project Business Case Benefits – Part 3
Project Benefit Gains
The savings from the previous section are in affect a negative view as you are seeking to lower costs. By way of contrast, gains are on the positive side. What you are trying to achieve here is to increase revenue or improve service by delivery of your project.
Achieving something that the organization has committed to, in the five-year strategy plan for example.
Check whether the project will increase staff performance, perhaps by giving people at a computer tools to do the job or reducing the time it takes them to find essential information or data.
An example here could be cutting waiting times in a hospital, or achieving faster delivery of products or services to customers.
An example here would be making it much easier fuel customer to place orders and thereby reducing the number of customers will give up part way through your process – This is a problem when ordering online.
Production increases using faster machines as an example and this means that you can produce more units within a given time frame.
Some Projects, such as those involved with re-branding or product improvement, may be justified because they will boost sales.
Improving the quality or something organization is doing all producing. That may be a non-quantifiable benefit but an important one to maintain all boost the image or brand of your organization. Such a boost may happen through better design or by increased reliability as an example.
An improvement in the staff working environment – this benefit will normally be non-quantifiable but important.
You probably will not be able to measure a reduction in staff turnover that is due solely to the improvement in the working environment delivered by this project. But you will know for sure that you will continue to lose people if the environment is not significantly improved by this and other projects.
Image and reputation
Examples here are compliance where your project bring a dual organization into line with standards or codes of practice. This will have a significant positive impact on your organizations public image.
These benefits may be very significant if the project eliminates a problem that was in the public eye.
An announcement that the problem is now resolved may do a lot to help restore eight damaged reputation.
Disadvantages Smart List (sometimes referred to as Dis-Benefits)
A well-known project methodology calls disadvantages Dis-benefits.
However, that word is not in common use so it is better to stick with the word disadvantages in my opinion.
It is important not to confuse disadvantages with what will happen if you do not run the project – remember that disadvantages as set down in the business case, are the negative things that will happen if you do run the project. Once again, a disadvantage is not a risk, since you are expecting the disadvantage to occur.
Sometimes running a project brings disadvantages though of course these should be outweighed by the advantages unless the project is a mandatory one.
Do not let people get taken by surprise with negatives, but rather keep the business case realistic so that managers know what they are letting themselves in for. This is very similar when stating the risks of a project – even though a disadvantage is not a risk, but rather something that you are expecting to happen because of delivering the benefits of the project.
The following ideas consist of disadvantages that all to be stated within your project business case:
Temporary disruption while the project is in progress such as blocking an entrance to a building one extension work is done.
An example here might be processing customer orders will be slowed down while the warehouse is being reconfigured as part of the project.
Loss of production
This could be the increase of “downtime” of Computer Systems or production line machinery while changes are made.
Loss of functionality
All those things may be improved in one part of the operation, perhaps a slight be degraded in another. An example here might be a new computer package that does most things a lot better ball a few things that used to be automated will now have to be done by hand.